Singapore asset managers expect geopolitical conflicts to increase this year and hurt growth in Asia, according to an annual survey by the Investment Management Association of Singapore (IMAS).
The survey of 52 C-suite executives in the asset management industry found that 56% anticipate heightened geopolitical conflicts, and 77% expect increased trade tensions and weaker growth in China to hinder Asian growth.
Meanwhile, 52% are confident that central banks can achieve a soft landing with their interest rate decisions.
According to Jenny Sofian, chairman of IMAS, the survey findings published on January 9 offer a “critical lens” into the asset management landscape, identifying risks that will influence decision-making in 2025.
“Amidst geopolitical uncertainties and shifting market dynamics, firms must adapt their strategies to remain competitive while capitalising on emerging opportunities. This includes leveraging technological advancements, embracing innovative investment solutions, and addressing evolving client demands,” she says in a statement.
She adds that it’s crucial for the asset management industry to “demonstrate resilience, agility, and foresight” in navigating challenges and driving sustainable growth in an increasingly complex global geopolitical environment.
Meanwhile, half the survey respondents say they will offer new asset classes, including private assets and digital assets, to customers, while 38% will move into new client sectors such as retail investors and high-net-worth individuals.
And almost two-thirds worry about faster capital flows into passive funds and continued erosion of profit margins.